This CEO’s Small Insurance Firm Mostly Turned A Profit Under Obamacare. Here’s How

Health InsuranceMarch 1, 2017Comments Off on This CEO’s Small Insurance Firm Mostly Turned A Profit Under Obamacare. Here’s How

Dr. Mario Molina now runs Molina Healthcare, the small insurance company his father founded in 1994 in Southern California. Part of the firm’s success, he says, stems from understanding the priorities of patients.

Courtesy of Molina Healthcare

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Courtesy of Molina Healthcare

Dr. Mario Molina now runs Molina Healthcare, the small insurance company his father founded in 1994 in Southern California. Part of the firm’s success, he says, stems from understanding the priorities of patients.

Courtesy of Molina Healthcare

Some large health insurance companies have suffered losses under the Affordable Care Act, leading to a few high-profileexits from the health exchanges. Humana is just the latest, announcing in January that it will stop offering health insurance on the Affordable Care Act exchanges at the end of 2017.

But the administrators of a smaller, California-based insurer — Molina Healthcare — managed to turn a modest profit in the early years of the health law. How did they do it?

“We understood the demographics of the people that we’re serving a little better,” says Dr. J.